Shares of Lundin Gold (TSX: LUG) outperformed the market on Friday despite the miner reporting a slight year-on-year decrease in quarterly production from the Fruta del Norte mine in southeast Ecuador.
Gold production during the third quarter of 2023 came in at 112,711 ounces, compared to 121,635 ounces from the the same quarter of 2022.
Contributing to the decrease in production was a drop in the average gold recovery rate, from 90.3% to 86.5%. However, this was partially offset by an increase in the average throughput.
As a result, gold output from Fruta del Norte is still expected to meet Lundin’s annual guidance of 450,000 to 485,000 ounces.
“Our third quarter results put Lundin Gold firmly on track to meet its 2023 production guidance,” CEO Ron Hochstein said in a press release.
“We continue to focus on improving recoveries through numerous initiatives and expect improvement in the coming quarters,” he added.
Lundin Gold’s stock closed the session 8.9% higher on the TSX, trading at C$16.58 apiece. The Vancouver-based company has a market capitalization of nearly C$4 billion.